This week, nearshoring opportunities rise in the sector, with 15 Italian companies seeking to invest in Mexico to gain access to the US market. Regenerative agriculture steps into the spotlight as it can help reverse climate change by rebuilding the soil’s organic matter. Mexican Hass avocado exports are now worth US$4 billion, up from US$2.5 billion two years ago, with the US as its largest importer. Finally, the International Maize and Wheat Improvement Center (CIMMYT) reaffirmed its commitment to support the development of farmers in Mexico in alignment with the UN Sustainable Development Goals (SDG).
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Amid the global business shift following the COVID-19 pandemic, international investors have set their eyes on Mexico in recent months and plan to establish their operations in the country thanks to the phenomenon called nearshoring, said Karen Harris, Expert in Macro Trend, Bain & Company. In this context, Mexico could introduce 15 Italian companies in the food, agro-industrial, biomedical and technological sectors. These companies are interested in evaluating the possibility of investing in Mexico and gaining access to the US market. The geographical proximity of Mexico and its commercial integration with its trading partners made the country an attractive choice for companies to take advantage of nearshoring opportunities in Latin America.
Regenerative agriculture imitates most natural cycles and processes to avoid the emission of nutrients and waste to the environment as much as possible, explained Hugo Garduño, Co-Founder, Verqor. It focused on the regeneration of soil, one of the latest sustainability trends globally. Growers who have incorporated one or all of these practices are reversing climate change by rebuilding the soil’s organic matter and restoring its biodiversity. The food they’re growing is also more nutrient-dense than traditionally grown, which helps fight the epidemic of chronic disease Mexico is undergoing, explained Garduño.
According to the 2021-2022 Economical Contribution Analysis from Texas A&M University, the import of Mexican avocados continues to impact the US and Mexican economies substantially. The analysis revealed that imports of the Mexican Hass avocado are now worth US$4 billion, up from US$2.5 billion two years ago. The US is the largest importer of Mexican avocados, accounting for 1.1 million tons in 2021, according to data from the Department of Agriculture (USDA). Mexican avocado imports have contributed to a US$11.2 billion economic spill in the US, reads the report. “The new numbers are testimony to the positive impact that the trade relationship between the two countries has on economies in general,” said Ron Campbell, Executive Director, Mexican Hass Avocado Importers Association (MHAIA).
During the “Plan Maíz, Commitment to Regenerative Agriculture and Sustainability” event, held in the framework of National Corn Day, Nestlé Mexico and CIMMYT reaffirmed their commitment to support economic development among Mexican farmers in a manner aligned with the SDG. Plan Maíz seeks to improve regenerative agriculture practices to positively impact food security, reduce agriculture’s environmental impact and nurture the social inclusion of the Mexican countryside.